Part C. Reorganization Plan No 1.


(Effective August 21, 1986)

Prepared by the Mayor and transmitted to the Council of the District of Columbia on May 27, 1986, pursuant to the provisions of section 422(12) of the District Charter.

I. PURPOSE

The purpose of this reorganization is to consolidate, within the Department of Consumer and Regulatory Affairs, certain licensing and regulatory functions related to vending businesses in public spaces pursuant to a Regulation Governing Vending Business in Public Space, Regulation 74-39, enacted December, 13, 1974, as amended by the Vendors Regulation Amendment Act of 1978, D.C. Law 2-82, effective June 30, 1978.

II. FUNCTIONS

The functions of determining vending areas, types of permitted vending, and standards to be followed by vendors, and of conducting hearings for such purposes, which were vested in the Office of Business and Economic Development pursuant to Mayor's Order 82-186 dated October 25, 1982, are hereby transferred to the Department of Consumer and Regulatory Affairs.

III. TRANSFERS

All records relating to the duties and functions transferred in part II are hereby transferred to the Department of Consumer and Regulatory Affairs.

IV. ORGANIZATION

The Director, Department of Consumer and Regulatory Affairs, in the performance of the duties and functions assigned by this plan, is authorized to establish such organizational components with specified functions as the Director deems appropriate.

V. EFFECTIVE DATE

The provisions of this plan shall become effective on a date to be specified by an Executive Order of the Mayor no later than 30 days after this plan becomes effective in accordance with Section 422(12) of the District of Columbia Self-Government and Governmental Reorganization Act, P.L. 93-198, effective December 24, 1973, D.C. Code § 1-242(12)(1981) [D.C. Official Code § 1- 204.22(12)].

MAYOR'S STATEMENT

Reorganization Plan 1 of 1986, which would consolidate within the Department of Consumer and Regulatory Affairs functions related to licensing and regulating vendors, is the culmination of several years' work to develop and implement a comprehensive program for vendors who operate exclusively from public space in the District of Columbia. The need for this program developed as a result of significant changes in the numbers and types of vending businesses which began to appear on District streets in early 1980. During the 1960's and most of the 1970's, vending businesses consisted of occasional corner vendors selling specialty items, such as cut flowers and ready to-eat foods. By early 1980, vending businesses, mushroomed--thriving enterprises appeared all along busy streets and sidewalks, selling a full range of goods from apparel to kitchen appliances.

These changes, in combination with a corresponding increase in commercial activity and traffic in the District, caused widespread concern about the conduct and character of vending operations in the District. The public was concerned about increased congestion of the sidewalks and streets. Consumers, who once had known and relied on the goods of corner vendors, grew increasingly concerned about the quality of items purchased from vendors they did not know. Vendors, who once enjoyed standard locations with relatively little competition, found themselves competing not only for patrons, but also for locations on the streets. Operators of fixed location businesses complained of unfair competition from vendors who, because of their low overhead expenses, sold the same types of items offered by fixed location businesses, but at lower prices. Business operators argued that vendors should be charged equitable license and public space rental fees, and should be subjected to tighter control of sales tax collections.

In May of 1983, in response to these and other concerns, I instructed the Executive Director of the Office of Business and Economic Development (OBED) to appoint an Advisory Group on Street Vending to recommend changes to the District's vending regulations which would address the needs of the public, of vendors, and of the labor and business communities. The Advisory Group was asked to examine street vending in light of Downtown and neighborhood planning and economic development efforts, expanding entrepreneurial and employment opportunities for District residents, and strengthening the District's tax base.

The Advisory Group adopted the following general policies to provide a framework for considering vending issues and, ultimately, for proposing a revised regulatory program:

Street vending is an integral component of the small business sector of the local economy, thus, vendors should receive the same general rights and assume the same general obligations accorded to fixed-location merchants.

Street vending activity should be encouraged in order to provide entrepreneurial and employment opportunities, and special emphasis should be given to expanding opportunities for District residents.

The street vending regulatory program must ensure public safety and welfare by recognizing that the movement of persons and goods is the primary purpose of the streets and sidewalks.

Vending activity should enhance street activity through attractive and well-maintained vending stands, carts and vehicles, and by offering patrons a variety of goods which complement other commerce.

The Advisory Group responded with a series of recommendations for vending zones, types of goods, location standards, vending fees, site allocation, operating standards, special events, administration, and enforcement.

The recommendations of the Advisory Group were reviewed by the Deputy Mayor for Economic Development (DMED) who in turn established an Interagency Task Force on Street Vending which was composed of all city agencies which have a direct or indirect involvement in regulating vendors. The Task Force was given responsibility to analyze the Advisory Group's recommendations and to draft new rules to correct deficiencies in the existing vending regulatory program. Public comments on the proposed rules were then solicited; two public hearings were held and 4 rulemaking notices soliciting public comments were published in the D.C. Register. The end product of this extensive process was an equitable, comprehensive and enforceable program to regulate vendors in the District.

The development of this regulatory program involved significant issues affecting overall economic development in the District of Columbia. Thus, under the guidance of the DMED, the Office of Business and Economic Development was the logical choice to spearhead this phase of development of the program. With the adoption the comprehensive vending regulations, the focus shifted to implementing and enforcing those regulations--functions which are vested in the Department of Consumer and Regulatory Affairs.

This reorganization plan, by consolidating vending licensing and regulatory functions, will streamline the overall operation of the vending program, and will enable the Department of Consumer and Regulatory Affairs to more effectively regulate vendors. For some time there has been a need to hire additional vending program staff, a need which has been exacerbated by an increase in the number of vendors in the District. This reorganization will make the personnel shortage less severe. It is expected that existing DCRA personnel, complemented by 3 new positions--a vending coordinator, a staff assistant, and a clerk-typist--will be sufficient to carry out the consolidated vending program functions.

Finally, this reorganization will affect only those vending functions which are now being performed by the Office of Business and Economic Development. Functions related to vending now being performed by other departments will remain in those departments.

I stand ready to move forward with this reorganization plan.

RATIONALE

The primary reason for this reorganization is the need to concentrate on implementing and enforcing the newly revamped program to regulate vendors who sell products exclusively from public space. This revamping of the District's vending program was a necessary response to the vastly changed conditions of vending businesses, such as a drastic increase in the number of vendors,, and the types of goods they sold. The previously existing vending program was not equipped to deal with the increased demands made by vendors who wanted to set up businesses, fixed locations business operators who wanted vendors more strictly regulated, and citizens who complained about congested sidewalks and streets, and about the quality of goods being sold by some vendors.

The governmental response to these concerns, involved the resolution of significant issues affecting overall economic development in the District. Thus, the involvement of the Office of Business and Economic Development, along with other affected agencies, was critical to the development and adoption of a comprehensive program to regulate vendors.

Now that comprehensive regulations have been adopted, it is necessary to focus on implementing and enforcing those regulations. This reorganization, by consolidating OBED and DCRA vending functions in DCRA, will strengthen these, efforts. These changes will enable DCRA to more effectively regulate vendors and will streamline the overall operation of the vending program. There is a present need to hire additional vending program staff in OBED as well as DCRA. This reorganization will make the personnel shortage less severe. Only three new positions, a vending coordinator, a staff assistant, and a clerk-typist, will be created by this reorganization and, along with existing DCRA personnel, will be sufficient to carry out the consolidated vending program functions.

(Effective August 21, 1986)

Prepared by the Mayor and transmitted to the Council of the District of Columbia on May 27, 1986, pursuant to the provisions of section 422(12) of the District Charter.

I. PURPOSE

The purpose of this reorganization is to consolidate, within the Department of Consumer and Regulatory Affairs, certain licensing and regulatory functions related to vending businesses in public spaces pursuant to a Regulation Governing Vending Business in Public Space, Regulation 74-39, enacted December, 13, 1974, as amended by the Vendors Regulation Amendment Act of 1978, D.C. Law 2-82, effective June 30, 1978.

II. FUNCTIONS

The functions of determining vending areas, types of permitted vending, and standards to be followed by vendors, and of conducting hearings for such purposes, which were vested in the Office of Business and Economic Development pursuant to Mayor's Order 82-186 dated October 25, 1982, are hereby transferred to the Department of Consumer and Regulatory Affairs.

III. TRANSFERS

All records relating to the duties and functions transferred in part II are hereby transferred to the Department of Consumer and Regulatory Affairs.

IV. ORGANIZATION

The Director, Department of Consumer and Regulatory Affairs, in the performance of the duties and functions assigned by this plan, is authorized to establish such organizational components with specified functions as the Director deems appropriate.

V. EFFECTIVE DATE

The provisions of this plan shall become effective on a date to be specified by an Executive Order of the Mayor no later than 30 days after this plan becomes effective in accordance with Section 422(12) of the District of Columbia Self-Government and Governmental Reorganization Act, P.L. 93-198, effective December 24, 1973, D.C. Code § 1-242(12)(1981) [D.C. Official Code § 1- 204.22(12)].

MAYOR'S STATEMENT

Reorganization Plan 1 of 1986, which would consolidate within the Department of Consumer and Regulatory Affairs functions related to licensing and regulating vendors, is the culmination of several years' work to develop and implement a comprehensive program for vendors who operate exclusively from public space in the District of Columbia. The need for this program developed as a result of significant changes in the numbers and types of vending businesses which began to appear on District streets in early 1980. During the 1960's and most of the 1970's, vending businesses consisted of occasional corner vendors selling specialty items, such as cut flowers and ready to-eat foods. By early 1980, vending businesses, mushroomed--thriving enterprises appeared all along busy streets and sidewalks, selling a full range of goods from apparel to kitchen appliances.

These changes, in combination with a corresponding increase in commercial activity and traffic in the District, caused widespread concern about the conduct and character of vending operations in the District. The public was concerned about increased congestion of the sidewalks and streets. Consumers, who once had known and relied on the goods of corner vendors, grew increasingly concerned about the quality of items purchased from vendors they did not know. Vendors, who once enjoyed standard locations with relatively little competition, found themselves competing not only for patrons, but also for locations on the streets. Operators of fixed location businesses complained of unfair competition from vendors who, because of their low overhead expenses, sold the same types of items offered by fixed location businesses, but at lower prices. Business operators argued that vendors should be charged equitable license and public space rental fees, and should be subjected to tighter control of sales tax collections.

In May of 1983, in response to these and other concerns, I instructed the Executive Director of the Office of Business and Economic Development (OBED) to appoint an Advisory Group on Street Vending to recommend changes to the District's vending regulations which would address the needs of the public, of vendors, and of the labor and business communities. The Advisory Group was asked to examine street vending in light of Downtown and neighborhood planning and economic development efforts, expanding entrepreneurial and employment opportunities for District residents, and strengthening the District's tax base.

The Advisory Group adopted the following general policies to provide a framework for considering vending issues and, ultimately, for proposing a revised regulatory program:

Street vending is an integral component of the small business sector of the local economy, thus, vendors should receive the same general rights and assume the same general obligations accorded to fixed-location merchants.

Street vending activity should be encouraged in order to provide entrepreneurial and employment opportunities, and special emphasis should be given to expanding opportunities for District residents.

The street vending regulatory program must ensure public safety and welfare by recognizing that the movement of persons and goods is the primary purpose of the streets and sidewalks.

Vending activity should enhance street activity through attractive and well-maintained vending stands, carts and vehicles, and by offering patrons a variety of goods which complement other commerce.

The Advisory Group responded with a series of recommendations for vending zones, types of goods, location standards, vending fees, site allocation, operating standards, special events, administration, and enforcement.

The recommendations of the Advisory Group were reviewed by the Deputy Mayor for Economic Development (DMED) who in turn established an Interagency Task Force on Street Vending which was composed of all city agencies which have a direct or indirect involvement in regulating vendors. The Task Force was given responsibility to analyze the Advisory Group's recommendations and to draft new rules to correct deficiencies in the existing vending regulatory program. Public comments on the proposed rules were then solicited; two public hearings were held and 4 rulemaking notices soliciting public comments were published in the D.C. Register. The end product of this extensive process was an equitable, comprehensive and enforceable program to regulate vendors in the District.

The development of this regulatory program involved significant issues affecting overall economic development in the District of Columbia. Thus, under the guidance of the DMED, the Office of Business and Economic Development was the logical choice to spearhead this phase of development of the program. With the adoption the comprehensive vending regulations, the focus shifted to implementing and enforcing those regulations--functions which are vested in the Department of Consumer and Regulatory Affairs.

This reorganization plan, by consolidating vending licensing and regulatory functions, will streamline the overall operation of the vending program, and will enable the Department of Consumer and Regulatory Affairs to more effectively regulate vendors. For some time there has been a need to hire additional vending program staff, a need which has been exacerbated by an increase in the number of vendors in the District. This reorganization will make the personnel shortage less severe. It is expected that existing DCRA personnel, complemented by 3 new positions--a vending coordinator, a staff assistant, and a clerk-typist--will be sufficient to carry out the consolidated vending program functions.

Finally, this reorganization will affect only those vending functions which are now being performed by the Office of Business and Economic Development. Functions related to vending now being performed by other departments will remain in those departments.

I stand ready to move forward with this reorganization plan.

RATIONALE

The primary reason for this reorganization is the need to concentrate on implementing and enforcing the newly revamped program to regulate vendors who sell products exclusively from public space. This revamping of the District's vending program was a necessary response to the vastly changed conditions of vending businesses, such as a drastic increase in the number of vendors,, and the types of goods they sold. The previously existing vending program was not equipped to deal with the increased demands made by vendors who wanted to set up businesses, fixed locations business operators who wanted vendors more strictly regulated, and citizens who complained about congested sidewalks and streets, and about the quality of goods being sold by some vendors.

The governmental response to these concerns, involved the resolution of significant issues affecting overall economic development in the District. Thus, the involvement of the Office of Business and Economic Development, along with other affected agencies, was critical to the development and adoption of a comprehensive program to regulate vendors.

Now that comprehensive regulations have been adopted, it is necessary to focus on implementing and enforcing those regulations. This reorganization, by consolidating OBED and DCRA vending functions in DCRA, will strengthen these, efforts. These changes will enable DCRA to more effectively regulate vendors and will streamline the overall operation of the vending program. There is a present need to hire additional vending program staff in OBED as well as DCRA. This reorganization will make the personnel shortage less severe. Only three new positions, a vending coordinator, a staff assistant, and a clerk-typist, will be created by this reorganization and, along with existing DCRA personnel, will be sufficient to carry out the consolidated vending program functions.